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A used car has a value of $15,250 when it is purchased in 2012. The value of the car decreases at a rate of 7.5% per year.


Write an exponential function that models the value of the car, y, over x years.

To the nearest cent, what will be the value of the car after eight years?

Verified Answer :

the given P=15250 
r=7.5/100=0.075 
t=x 
y = 15250(1 - 0.075)^x 
after 8 years we would have 
x = 8 
y = 15250(1 - 0.075)^8 
y = $8,173.42 
after 8 years the value of the car would be $8,173.42

The value of the car after eight years will be $8173.42

What is Compound interest?

Compound interest is defined as interest paid on the original principal and the interest earn on interest of principal.

Initial value of car (P) = $15250

Rate (r) =7.5%

time = x =8

This exponential function represents the value of the car :

\(y = P(1 - \dfrac{r}{100})^x\)

\(y = 15250(1 - \dfrac{7.5}{100})^8\)

\(y = 15250(1 - 0.075)^8\)

\(y = 15250(0.5359)\)

\(y=8173.42\)

Hence, the value of the car after eight years will be $8173.42

Learn more about Compound interest here:

brainly.com/question/25857212

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